Health Care Spending in the US Essay Example | Topics and Well Written Essays - 750 words

Health Care Spending in the US - Essay Example In 2012, the government assigned $3 trillion to health care. This was an increase from 2011 spending of $2.8 trillion. Researchers have used this to project a 4% growth rate in the national spending on health in the subsequent years. The rate of growth of national health spending in 2011 was 3.9% as compared to 3.7% growth in 2010. As a percentage of the nation’s gross domestic product, health care spending indicated a fairly stable 17.9 index between 2009 and 2011 (Peden, 2012). Looking at the nation’s spending on health care in 2011 by service, hospital care took $850.6 billion which was a 4.3% growth rate, and this was a drop from 4.9% rate in 2010. The slow growth was attributed to both the drop in price and use of hospital service experienced that year. Allocation to physician and clinical service in 2011 amounted to $541.4 billion which was a 4.3% growth as compared to the 3.1% 2010 growth. This change may have emanated from the increase in the use of services in 2011 despite the slowed growth in prices experienced the same year. Private health insurance and Medicare spent more in 2011 than in the previous year. Other professional services received $73.2 billion in 2011 that was a 4.9% growth rate over the expenditure for the same the preceding year. The national government in 2011 assigned $108.4 billion to dental services indicating a 3.0% growth over the previous year’s 2.7% growth. The spending for other health, residential and personal care services in 2011 came to $133.1 billion reaching a 4.0% growth as compared to 4.5% growth in 2010. Nursing care facilities and continuing care retirement communities stood at $149.3 billion in 2011 indicating a 4.4% growth over the previous year’s 3.2% growth (Jonas et. al., 2013). Homecare health care spending was $74.3 billion in 2011 indicating a 4.5% growth lower than 2010’s 5.8% growth. This slow growth was as a result of a fall in Medicare and Medicaid spending that year. T he national government allocated $263.0 billion to prescription drugs in 2011which translated to a 2.9% growth over the previous year’s 0.4% growth. This increase was due to an increase in the price of prescription drugs and additional spending on the new brand of drugs (Barr, 2011). Medical equipment received $38.9 billion which was a 5.3% growth in 2011 relative to 5.8% growth in 2010. Non-durable medical products were assigned $47.0 billion in 2011 which maintained the 2010 4.0% growth rate. Major sources of finance for heal care spending have been consistent. In 2011, Medicaid gave $407.7 recording a 2.5% growth relative to 5.9% growth in 2010. Medicaid registered 3.2% enrollment in 2011 which was a drop from 2010’s 4.9% enrollment (Jonas et. al., 2013). There was a decrease in federal Medicaid to 7.1% in 2011 while the state Medicaid expenditures increased to 22.2% owing to the lapse of the aid accorded states by the federal government that year. The OOP (Out-of-p ocket) spending was $307.7 billion in 2011 indicating a 2.8% increase from 2010’s 2.1% growth. Medicare accounted for 21% of the nation’s total spending on health in 2011. That year, it contributed $554.3 billion an outstanding growth to 6.2% as compared to 4.3% growth in 2010. This increase in growth was as a result of the fast growth in expenditure on nursing facilities and physician services and an accompanying